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Gold dips in Asia

FXStreet (Mumbai) - Gold prices weakened moderately in the Asian session Friday amid signs of strength in the USD index and mixed action in the Asian equity markets.

Rejected at 5-MA

Prices were rejected at 5-DMA located at USD 1194.5 as the USD index recovered slightly to 97.61 from the low of 97.66 seen in the previous session. Meanwhile, the mixed action in the major Asian equities fails to provide any clear indication to gold traders. Shanghai retreated 0.54%, while the Australian Asx 200 advanced 1.27%. Hang Seng suffered moderate losses.

Prices clocked a high of USD 1198.1 in the previous session on the back of disappointing manufacturing data in China and Eurozone. A slight increase in the weekly jobless claims in the US, coupled with a sharp drop in the new home sales also helped the yellow metal.

Gold Technical Levels

The metal currently trades 0.17% lower at USD 1192.30/Oz. The immediate resistance is seen at 1194.5 (5-DMA), above which gains could be extended to 1198.05 (10-DMA). On the flip side, a break below 1190.92 (50-DMA) could drive the metal lower to 1183.7 (Apr. 14 low).

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